Centralines Trustee Resigns Over $100k Dam Decision

Monday, 5 May 2025, 5:57 pm
Article: Linda Hall - Local Democracy Reporter

One of the members of the Central Hawke’s Bay power consumers’ trust has resigned in protest over lines company Centralines’ board’s plan to give $100,000 of its funding to help rescope a large-scale dam in the district.

Centralines has a board, which makes operational decisions, and a power consumers’ trust that represents the public stakeholders.

It is owned by Central Hawke’s Bay power consumers.

“I don’t think the decision is in the best interests of consumers and beneficiaries of Centralines,” resigning trustee Tony Murphy told Local Democracy Reporting.

“I can’t in good conscience remain a part of a trust which has chosen to support the board in its decision.”

Murphy was one of seven trustees.

Centralines in 2022 came under fire for putting $200,000 of its funding towards re-scoping the Tukituki Water Security Project and has recently decided to put another $100,000 towards it.

Various attempts to get a dam in CHB off the ground have been mired in controversy since it was first supported by Hawke’s Bay Regional Council (HBRC) almost a decade ago.

The Ruataniwha Dam was abandoned by HBRC in 2018 after a Supreme Court finding against it, and the $20m it had spent on development went down the drain.

Consents were sold to Water Holdings Hawke’s Bay Ltd, a group of local farmers and rebranded as the Tukituki Water Security Project.

In December 2024, Development Minister Shane Jones committed $3m to the project through Regional Infrastructure Fund for the pre-construction development of the Project.

A flyer distributed at a meeting by local pressure group Water Wise Use HB called for supporters to contact Central Hawke’s Bay Power Consumers’ Trust chair, Karen Middelberg, to request she move a motion at the next trustee meeting, in late May, directing the Board to rescind its decision.

“If Middelberg is not prepared to act on the concerns of trust beneficiaries, then she should resign,” it said.

Water Wise Use spokesperson Trevor Le Lievre said ratepayers and taxpayers should prepare themselves for an assault on their wallets, “as this zombie project has an insatiable appetite for public money”.

However, Central Hawke’s Bay mayor Alex Walker said they were the sort of comments designed to “fearmonger among our community and ratepayers, with no basis of fact to them”.

“The consents for the Tukituki Water Security Project are in private hands, the group is working on the next stages of a business case.

“If there is any requirement for public funding, there would be intense public discussions about this, and what is right for Central Hawke’s Bay.

“That time is not now. There is nothing to debate.”

In response to the call for her resignation, Middelberg said the trust deed made it clear “the trust is not to involve itself in the management or operation of the company”.

“This proposal to contribute $100,000 to the water project is a board decision, and it was shared with the trust by the company as a courtesy.

“This decision is well within the Board’s delegated responsibility and the decision does not meet the threshold that requires approval from the Trust.

“The Trust informed the Board of the opinions from some of the community and expects these were considered in making its decision. We discussed it and although not all members agree, decided not to intervene.

“The trust’s duties are to appoint directors to a company with $74 million of assets in our community.”

Tukituki Water Security Project spokesman Mike Petersen said he welcomed discussions about water security.

“The Tukituki Water Security Project was formed to address the consequences of climate change and increased demand from population growth, and to better understand the impacts these will have in a drying region,” he said.

“Our view has been consistent about water storage being one part of the solution to ensure water security, alongside other measures such as wise water use, greater water efficiencies and recycling. In this respect, we share the same objectives as the Wise Water team.

“These are different projects, using the same Makaroro site for water storage, but with a completely different hierarchy of downstream water use.

“Centralines is a commercial company and has its own strategic and commercial imperatives for investing in projects like the TWSP.

“I cannot speak for Centralines, but they are among several businesses that have committed funding because they see water storage as a key regional priority for Hawke’s Bay to help the region thrive and grow.”

LDR is local body journalism co-funded by RNZ and NZ On Air.

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